Sold of house

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2013 Hi,

one of my friend sold his residential property for a huge amount. how to calculate & file the return,i mean is have to consider as a capital gain or other.

Purchaser deducted already 1% TDS and transferred to Govt. AC.

is we need pay tax other then 1%?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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19 November 2013 yes... he shall be liable for capital gains tax unless he wishes to reinvest the gains/consideration received as per provisions of section 54, 54ec etc

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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19 November 2013 If the property was held for more than 36 months then it will be long term capital gain on such transfer..
In general tax on long term Capital gain is 20 percent..
However certain exemption is allowed to avail the exemption to avoid capital gain tax..

Invest such amount in Purchasing of another Residential property.. Sec 54..

Investing Capital gain amount in NHAI/REC Bonds sec 54EC...

Investing in specified shares sec 54GA...

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Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2013 Hi,

he sold the House for Example Rs.80L than the tax amount would be 16L (20% on Long term Capital gain).

So how we can use the sec 54, because yet present he is not constructing the house and not yet buy any new house.

If we are not Buy and constructing house how much we have to pay the tax?

If we buy or constructing house how to use sec 54?

Thanks in Advance.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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19 November 2013 No.

You also need to reduce the indexed cost of acquisition from 80 lakhs to arrive at capital gains. if you dont buy or construct a house, you shall have to pay taxes.

If you intend to buy or construct a house, either do it by the due of date of filing tax returns for the relevant assessment year or deposit the said amount in capital gains accounts scheme to use the same to buy or construct the house within the timelines prescribed in section 54.

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Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2013 Hi,

I thought this Property has transferred from his father to him (Inheritance)in 2003, hence we have to take the index cost of acquisition 463(2003-04 duration).

but we don't know the original value of the property when its was purchased by his father.

my Question is what would be the original cost at the time & is the index cost of acquisition correct.

thanks In adv

Nikhil Kaushik

Nikhil Kaushik (Expert)
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19 November 2013 1. please check the when did hie father bought/constructed this asset. If it was constructed/purchased before 1981, then the fair value as on 1 April 1981 shall be considered as the cost.

2. In case it was purchase/constructed after 1 April 1981, then you need to talk a property valuer to arrive at a reasonable value of such asset as on the date of completion of construction or year of purchase.

3. Indexation is rightly being calculated from 2003-04.

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2013 HI,

Could please tell me Capital gain Tax percentage.

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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27 December 2013 pls go thru this link..

https://www.caclubindia.com/articles/capital-gain-tax-simplified-18623.asp

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Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2013 Flat Rate Tax 20% on Capital gain. is it right

CA Pallav Singhania

CA Pallav Singhania (Expert)
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27 December 2013 Long term capital gain at flat rate 20 percent...

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Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2013 Hi,

If the tax payer women is there any particular exemption ?

Pubic notice through news paper is it treated as a advertise expenses (Before selling the asset he has given a public notice as per law if anybody having rights on particular property)?

is the Advocate charges should be treated as expenses ?

kindly revert. Thanks in Advance

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Querist : Anonymous

Querist : Anonymous (Querist)

21 February 2014 The Property sold in the month of August and we received the Amount from buyer,but till today we wont open the capital gain Ac to deposit the money to get benefit under the capital gains sections.

We are planing to buy new property in the coming next years ?

hence is we need to open capital gain AC now to keep that amount to get the benefit as well as to file the IT Return for FY 2013-14?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 February 2014 you need to open the capital gains a/c before the date of filing return under 139(1). if you are able to utilize the whole of the funds before filing the return, then there is no requirement to deposit any amount in capital gains account. If there is any unutilized amount as on date of filing the return, you need to put such amount in the capital gains account.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 February 2014 with regards to your earlier query, there is no additional benefit for the women nowadays.

such expenses in relation to title of property etc can be claimed as expenses related to transfer.

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